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TikTok Deadline Shift: Potential Impact for Investors

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President-elect Donald Trump said Saturday that he may provide a 90-day extension to ByteDance-owned TikTok to delay or prevent a ban in the U.S.

What Happened: During an interview with NBC on Saturday, Trump suggested that he is “most likely” to grant TikTok a 90-day extension from a potential U.S. ban.

“I think that would be, certainly, an option that we look at. The 90-day extension is something that will be most likely done, because it’s appropriate. You know, it’s appropriate. We have to look at it carefully. It’s a very big situation,” Trump said.

This extension would provide ByteDance additional time to sell to a non-Chinese buyer, in compliance with the law enacted by President Joe Biden last year. However, Trump’s final decision on this matter is still pending.

As reported by NBC News, the existing deadline for TikTok’s compliance is midnight Sunday. An extension announced on Monday might not be able to prevent the app from going offline for at least a day. The future of TikTok has been a major concern during the last days of the Biden administration.

The Biden administration has consistently stated that it does not intend to enforce the law, thereby shifting the responsibility to the incoming Trump administration. However, TikTok expressed apprehensions on Friday that the assurances from the White House might not be enough to prevent the app from being shut down.

Also Read: TikTok Says It Will Be ‘Forced To Go Dark’ In US On Jan 19 After Supreme Court Upholds Ban

Trump’s potential support for TikTok marks a significant departure from his previous stance during his first term, when he attempted to ban the app along with the Chinese messaging app WeChat. 

Meanwhile, on Saturday, the Biden administration called TikTok’s statement on going dark on Sunday a “stunt.”

“It is a stunt, and we see no reason for TikTok or other companies to take actions in the next few days before the Trump Administration takes office on Monday,” White House Press Secretary Karine Jean-Pierre told Reuters.

“We have laid out our position clearly and straightforwardly: actions to implement this law will fall to the next administration. So TikTok and other companies should take up concerns with them.”

“President Biden’s position on TikTok has been clear for months, including since Congress sent a bill in overwhelming, bipartisan fashion to the President’s desk: TikTok should remain available to Americans, but simply under American ownership or other ownership that addresses the national security concerns identified by Congress in developing this law,” Jean-Pierre added in the statement.

Why It Matters: TikTok’s potential ban in the US has been a contentious issue, with the app’s fate hanging in the balance during the transition between the Biden and Trump administrations.

The proposed 90-day extension could provide much-needed respite for TikTok and its parent company, ByteDance, allowing them additional time to comply with US regulations.

However, the future of the app in the US market remains uncertain until a final decision is made by the incoming Trump administration.

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Image: Shutterstock

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